Indian integrated steel mills continued to lower hot dipped galvanized (HDG) coil export prices but failed to push up volumes significantly as the sentiment in key markets like Gulf was impacted by crash in oil prices and reports of payment crisis surfacing for already concluded contracts, SteelOrbis learned on Thursday, April 23.
Market sources said that Indian HDG exporters further lowered export price by $10/mt over the week to $510-515/mt FOB, but buying interest in key market like Gulf region was low, which kept volumes at negligible levels.
At least two steel mills said that overall economic activity in the GCC region had been impacted by the crash in crude oil market and fallout in steel sector had triggered sharp slowdown in import activity too.
According to two leading Mumbai based traders, there have been unconfirmed reports suggesting of two possible payment defaults by buyers against completed transactions although the traders said that negotiations are currently on to come to a deferred payment arrangement between buyers and sellers.
Sources said that a western India based steel mill concluded an export contract for 7,000 mt with Asian buyer at $520/mt FOB, but with additional 2 percent discount.
Eastern India based steel mill reportedly concluded an export contract for 8,000 mt to Asia at slightly higher price of $525/mt FOB, sources added.
